COUNTRY

UAE

UAE ACCOUNTING AND BOOKKEEPING SERVICE

If you are considering Accounting Services in UAE. Our guide below covers all the information on UAE accounting. 

It is mandatory for all businesses as per company law obligation as a result of tax filing requirements.

In contrast to nations that do charge taxes, the UAE has less strict accounting regulations because it does not impose any federal taxes on income or earnings. It is crucial to establish an accounting structure that generates reliable information and analysis as a foundation for strategic decision-making, even in a tax-free environment.

The UAE government requires all businesses to keep their records on file for at least five years. In order to comply with regulatory obligations and maintain focus on their business objectives and aims, the majority of UAE enterprises hire outsourced accounting firms such as Relin Consultants. 

TYPES OF ACCOUNTING SERVICES IN THE UAE

BENEFIT FROM OUR ACCOUNTING AND BOOKKEEPING FIRM IN UAE

Relin Consultants’ accounting and bookkeeping firm in the UAE can offer several benefits to companies, including the following. 

Expertise

With years of experience and a team of professional accountants in UAE, Relin Consultants can provide expert advice and support for all accounting and bookkeeping needs.

Timely financial reporting

Relin Consultants can provide timely and accurate financial reports, helping companies make informed decisions.

Compliance with regulations

We help companies comply with local regulations and laws, avoiding potential penalties and ensuring the legality of their financial dealings.

Cost-effective solution

Outsourcing accounting and bookkeeping functions to Relin Consultants will be more cost-effective than maintaining an in-house accounting department.

Access to the latest technology

Relin Consultants uses the latest accounting software and technology to provide efficient and up-to-date services.

Customizable services

We tailor our accounting and bookkeeping services to meet a company’s specific needs and requirements.


WHAT IS THE ACCOUNTING STANDARD FOLLOWED IN UAE?

Businesses operating in the UAE, especially those affiliated with the Dubai International Financial Centre (DIFC), must adhere to IFRS guidelines for accounting services.

IFI, or the Islamic Financial Institutions operating under DIFC, adhered to the Financial Accounting Standards (FAS) report, which was audited by the AAOIFIFI (Accounting and Auditing Organisation for Islamic Financial Institutions). However, following the submission of two years’ worth of grant requests, IFRS is now an officially recognized accounting standard in the UAE.

WHAT IS FINANCIAL REPORTING IN UAE?

Financial reporting is the process of communicating financial information about a company to stakeholders, such as shareholders and creditors. This information is typically presented in financial statements, including the balance sheet, income statement, and cash flow statement. The purpose of financial reporting is to provide a clear and accurate picture of a company’s financial health and performance.

TYPES OF FINANCIAL REPORTING IN UAE

Audit report

The rules for the statutory audit must be followed by an audit company in Dubai. An audit report is impartial and governed by S.A.I. (the Supreme Audit Institution), which is a member of the Federal National Council.

Financial statements

The balance sheet, income statement, cash flow statement, and shareholder equity statement are examples of financial statements. These are the typical reports that must be written during a statutory audit in the United Arab Emirates.

Management Decisions & Analysis report

The performance evidence includes market research, competitor analysis, and previous business decisions.

Board of Directors Report

A report is prepared by organisations with a management hierarchy for the board of directors. This report provides a thorough knowledge and analysis of the entity’s operations and important choices.

Notes to accounts

Each report, whether an internal or external audit report, gives more details regarding the company’s accounting policies and practices.

Prospectus

The prospectus for the firm, where the information is explicitly offered to investors, shareholders, and other stakeholders of the company, includes a financial analysis report.

Corporate Governance Report (CGR)

The C.G.R. ensures accountability for the company’s choices, employees, and management in accordance with accounting and auditing standards.


WHY CHOOSE RELIN CONSULTANTS’ ACCOUNTING AND BOOKKEEPING SERVICES IN UAE?

At Relin Consultants, we are proud to have a team of knowledgeable professionals who are well-versed in UAE laws and regulations. Our services are designed to be both accurate and efficient, utilizing the latest technology and streamlined processes. 

With extensive expertise in accounting standards and tax laws, our team can help you stay compliant and manage your finances with ease. Trust us as your trusted global business set-up a partner for exceptional accounting services in the UAE. Contact us today to learn more about UAE Company Registration and Accounting Services.

FAQs

Is accounting in demand in the UAE?

Yes, accounting is in demand in the UAE. The growth of the country’s economy and the increasing number of businesses have created a high demand for skilled accountants.

What accounting standards are used in the UAE?

The UAE uses International Financial Reporting Standards (IFRS) as the primary accounting standards in UAE for financial reporting.

What are the types of bookkeeping in UAE?

There are two main types of bookkeeping in the UAE: manual and computerized.

In manual bookkeeping, transactions are recorded in a physical ledger (e.g., paper ledger) using pen and paper. It is a traditional method of keeping records and is still used by small businesses in the UAE.

In computerized bookkeeping, transactions are recorded and maintained in a digital format using accounting software. This method is more efficient and faster than manual bookkeeping and is widely used by businesses of all sizes in the UAE.

What services can a bookkeeper in UAE provide?

A bookkeeper in UAE can provide the following services:

  • Recording financial transactions
  • Maintaining accurate books of accounts
  • Preparation of financial statements
  • VAT filing
  • Payroll processing
  • Accounts payable and receivable management
  • Budgeting and forecasting
  • Financial analysis and reporting
  • Taxation services.

Why outsource accounting and bookkeeping services in the UAE?

Outsourced accounting services in UAE can help companies save time, money, and resources, as well as access expertise, improve accuracy and compliance with regulations, and focus on core business operations.

How are monthly bookkeeping and accounting services priced?

Monthly bookkeeping services are typically priced based on the scope of work and complexity of a company’s financials and can range from a flat fee to an hourly rate. Other factors that may affect the price include the size of the company, the number of transactions, and the software used for bookkeeping.

How can Accounting Service in UAE help my business?

Accounting services can help a business by providing financial record keeping, tax planning and compliance, budgeting and forecasting, financial reporting, fraud prevention, performance monitoring, cash flow management, and decision support.

What Are the Components of IFRS Financial Reporting in the UAE?

In accordance with IFRS, management creates financial statements using the accrual method of accounting. The cash flow statement, on the other hand, starts with the firm’s net income, calculates the economic activity, and converts it to a cash basis.

This is because the balance sheet and income statement both use accrual-based accounting. Therefore, the accrual foundation of accounting is not used to construct a cash flow statement.

Statement of Financial Position or the Balance Sheet

An entity’s current financial situation is shown on a balance sheet. Liabilities, equity, and assets from the balance sheet. Some of the key categories within the assets division are plant, machinery, property, tangible and intangible investments, cash and financial equivalents, and so on.

Payables, tax obligations, financial obligations, etc., are all examples of liabilities. The two categories of assets and liabilities are current and long-term.

Equity is the owner’s or partner’s portion of the capital that has been invested, reserved, and has non-controlling interests.

Income Statement

An income statement tracks a company’s performance through time to determine whether it has been profitable or not. The components of profit and loss are listed in one statement on the income statement, which can be reported in two different reports. The comprehensive income statement, in contrast, displays the whole income or loss.

  • The revenue is the first item on the income statement and is determined independently using the effective interest method.
  • Gains and losses on the de-recognition of financial assets are tallied depending on those expenses.
  • Impairment losses and financing costs
  • Calculating the profit and loss for partners and joint ventures
  • Reclassification of assets
  • Tax Expenses 
  • Tax Gains or losses from discontinued operations, sales of discontinued operations’ assets, or other similar events
  • The net profit or loss of the entity is displayed in the other comprehensive statement. This section covers any remaining adjustments to the elements stated in the income statement above.

Statement of Changes in Equity

The difference between the equity change at the beginning and the conclusion of the period is the equity reconciliation. Without altering the loss of ownership or control, it discloses the value based on information gathered from the profit and loss statement, other comprehensive income statements, and transactions involving the owners. Once determined, the dividends per share are then declared.

Change in equity can be calculated using this method:

Beginning Equity + Net income – Dividends +/- Other changes = Ending Equity

Statement of cash flow

The income statement serves as the sole source of data for the cash flow statement. A cash flow statement aids in determining how quickly a business can generate cash for operations, working capital, or even choices like equipment purchases.

Three categories are used to segment all cash flow statements:

  • The operating activity’s cash flow
  • The flow of funds generated by investment activities
  • Cash flow generated by financing activities

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